LNG

High prices could kill off smaller LNG markets

Strong demand and a surge in oil prices are pushing up Asian LNG prices, but this could make the fuel unaffordable for some Strong demand and a surge in oil prices are pushing up Asian LNG prices, but this could make the fuel unaffordable for some.
By The Wildcat 25 May 2018 0 31021
An LNG terminal in China. (Sinopec)

The predicted global glut in LNG has failed to materialise. Demand for the fuel has grown in line with recent additions to output, creating a relatively balanced market. In fact, the market appears to be tightening, fuelled by strong demand growth in Asia. But while producers may view the resulting higher prices as a positive development, any further tightening could make the fuel too expensive in markets that are driving growth, hurting LNG’s long-term prospects.

Last winter, Japan’s Ministry of Economy, Trade and Industry (METI) reported...